Was talking with Revenue Agent this morning.......during the BS portion of the conversation..............asked me if I wanted a job!!   (He was joking, of course)

Says the word is official.......hiring a bunch of newbies, and enforcement will get more "robust".

This usually means, if history is any indicator, that the number of exams will be increased. 

So........pay attention especially for the next 2-3 years on the paperwork.  Govt is looking for money, and "tax cheats" don't usually get much sympathy from the community------and apparently everyone is a "tax cheat" if they owe back taxes.  Poor economic times tend to promote a lot of cutting corners.......not reporting cash, etc etc.    Don't do it.  Use the law to get reduced taxes, not stupidity.

Pack your returns with commentary about unusual items------answer the questions before IRS has to visit to get answers. 

This element of "scrutiny" of tax returns is what separates "tax pros" from the "corner tax shop"---------so make sure your preparer is asking a lot of questions about the line items.  Filing electronically will greatly REDUCE your capacity to "explain" things in the returns.

Expect to see preparers get nailed, with big headlines...............although this is a tough thing for the IRS to do, I am told, it still is a very effective way to get "trickle down enforcement".

I would bet most of you hire preparers--------do not assume that reduces your responsibility.  You have got to make sure the preparers are informed of what you are doing........and make sure they discuss the "unusual" amounts of expenses (or even income for that matter), when compared to prior returns.  Again.......pack your returns............answer the questions in the returns that IRS would ask if they visited.